Foxconn delays $4.3bn takeover of Sharp which would unite major Apple iPhone suppliers

Lynsey Barber
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Japan's Sharp will be owned by Foxconn (Source: Getty)

A billion dollar deal that would create a merger between two of Apple's biggest suppliers has already hit a road block just hours after the takeover was confirmed.

Foxconn has put the $4.3bn (£3.08bn) deal to takeover Sharp on hold, according to several reports, after receiving new information regarding financial risks.

The struggling Japanese electronics maker earlier gave the go ahead to Foxconn, which is a major supplier to Apple and is officially known as Hon Hai Precision Industry. The deal would increase Foxconn's position in Apple, with Sharp also supplying screen technology to the US iPhone maker.

Sharp's board voted unanimously in favour of the buyout over a state-backed rescue, according to reports, and its the first time a Japanese electronics firm has fallen into foreign ownership.

Foxconn had planned to take a two-thirds stake in Sharp.

Shares in Sharp fell as much as 20 per cent while Foxconn shares were up by more than two per cent after the deal was first announced.

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